Restrictions take a toll

The euro and sterling rose to intra-day highs to over $1.19 and around $1.34 against the dollar respectively at one stage on Monday before both fell back by about a cent after the release of weaker than expected Euro Area and UK economic data, though they are clawing back some ground this morning. The single currency-pound rate, meanwhile, has remained largely unchanged at just under 89p

Equity markets had a mixed start to the week with US stocks gaining almost 1% but European indices ending marginally lower, although the latter have opened in positive territory this morning. In bond markets, core yields were unchanged to a touch higher on the day

The composite PMIs for the Euro Area and the UK both fell into negative territory (a reading of <50) in November led by declining services sector activity, which was impacted by tighter public health restrictions. In the US, in contrast, the composite PMI rose this month and remained comfortably in expansionary territory

Donald Trump has given approval for a formal transition process that would give President-elect Joe Biden and his team access to official briefings, though he says he will continue to contest the result of the election

Data due today includes consumer confidence and house prices in the US